Paving the Way for Renewable Energy Transformation in Victoria: A New Blueprint Proposed

The Victorian Government has released the updated Victorian Transmission Plan (VTP), outlining the renewable energy technologies and transmission needed to meet Victoria's energy needs for the next 15 years. This plan, a major milestone in Victoria's energy transition, according to Lily D'Ambrosio, Minister for Energy and Resources, is the cornerstone of a new approach that considers not just engineering and economics but also community input.

The VTP designates seven priority programs for transmission upgrades, including a second radial line and tie in loop in Gippsland, a new line between Sydenham and Tarrone, a new line between Truganina and Deer Park, and an additional short line between Hazelwood and Yallourn. The proposed Gippsland Shoreline REZ has been announced to support offshore wind connection assets, reflecting the state government's continued commitment to offshore wind as a key component of the renewable energy transition.

VicGrid, the organization responsible for coordinating project procurement for the VTP transmission projects in the VTP update 2027, will ensure flexibility, value for money, and minimal impacts on power bills. Subsequent VTPs will take a 25-year view, rather than 15-years, to remain up to date with technological developments and changing energy demand. An updated VTP will be published in 2027 and every four years after that, or more often if required.

Florence Riviere, an expert in planning and environmental law at Pinsent Masons, points out that the VTP does not streamline planning and environmental assessments and approvals for projects in the relevant zones. However, the VTP aims to support an orderly transition to renewables and achieve Victoria's renewable energy goals, including 65% electricity from renewables by 2030, 95% by 2035, and net-zero by 2045.

Leanne Olden, another expert in energy law at Pinsent Masons, states that the Victorian government plans to deliver between 5.7 and 9.6 gigawatts (GW) of new onshore wind and 9GW of new offshore wind by 2040. The government also plans for between 2.3 and 8.9GW of new utility-scale solar and between 4.8 and 7.7GW of new short and long duration storage capacity during this period.

The VTP establishes new benefits arrangements for communities that host REZs, with a new community energy fund created in each region. There will be further community and industry engagement opportunities during this process, ensuring that the long-term interests of all Victorians are balanced and that the values and voices of communities hosting energy infrastructure are reflected.

AEMO's draft 2025 Electricity Network Options Report indicates that the cost of new transmission projects has increased by up to 55% over the past two years. VicGrid's proposed changes to procurement of major transmission projects in Victoria are aimed at addressing this issue and ensuring value for money.

Offshore wind remains key to the state government's renewable energy goal and transition, despite recent setbacks in projects. The Wimmera Southern Mallee REZ and the Grampians Wimmera REZ have been combined into a single REZ with two sections, called the Western REZ, resulting in 6 proposed REZs: Central Highlands REZ, Central North REZ, Gippsland REZ, North West REZ, South West REZ, and Western REZ.

The release of the 2025 VTP marks a significant step forward in Victoria's renewable energy transition. With its focus on community engagement, long-term planning, and a commitment to renewable energy goals, the VTP is poised to guide Victoria towards a sustainable and clean energy future.

Paving the Way for Renewable Energy Transformation in Victoria: A New Blueprint Proposed